The Latvian tax system has not generally changed, but from time to time the government decides on changes in some taxes when drafting next year’s budget. In order to end this practice, the government has resolved to prepare and introduce a new tax policy – transfer the tax burden from laborforce to capital.

Although the Latvian economy was growing a little slower than anticipated in 2016, the financial market resisted the overall trend and proved its continuing stability. Last year, Latvian commercial banks continued to pursue their development strategies, and main banking indices improved.

The number of employed persons in Latvia was 895,000 or 61.8% of the population aged 15-74 years in the third quarter of 2016The registered unemployment level was at 9.5% of the economically active population in the third quarter of 2016Unemployment in 2020 is planned at 8.2% (the Finance Ministry projects)